Industrial Marketing and Consumer Marketing

1. Difference between Industrial and
Consumer Marketing
Market Structure
Industrial Markets:
• Geographically concentrated – Auto component
manufacturers in Pune, Gurgaon etc
• Relatively Fewer Buyers
• Oligopolistic Competition (A market condition in which sellers
are so few that the actions of any one of them will materially
affect price and have a measurable impact on competitors.)
Consumer Markets:
• Geographically Dispersed – Demand for buying cars is
dispersed
• Mass Markets, Many Buyers
• Monopolistic Competition

2. Difference between Industrial and
Consumer Marketing
Products
Industrial Markets:
• Can be technically complex – Axles for railway wagons
• Customised to user preference
• Service, delivery and availability very important
• Purchased for other than personal use – Ministry of
Railways purchases for the Indian Railways
Consumer Markets:
• Standardised – rail travel
• Service, delivery and availability only somewhat important
• Purchased for personal use

3. Difference between Industrial and
Consumer Marketing
Buyer Behaviour
Industrial Markets:
• Professionally Trained Personnel – Purchase of
sterile pumps by a biotech or pharma plant will
involve quality control department, purchase etc
• Functional Involvement at many levels –
Departmental heads will decide jointly
• Task Motives predominate

4. Difference between Industrial and
Consumer Marketing
Buyer Behaviour
Consumer Markets:
 Individual Purchasing – an OTC product will be
choice of consumer. Aspirins etc are sold by
many pharma companies
 Family involvement, influence
 Social/ psychological motives predominate

5. Difference between Industrial and
Consumer Marketing
Buyer –Seller Relationship
Industrial Markets:
• Technical Expertise is an asset – engineers are hired
by companies selling railway equipment
• Interpersonal relationships between buyers and
sellers
• Significant information exchange – a pharma
company will explain in detail the specs of a
tableting machine
• Stable, long term relationships encourages loyalty

6. Difference between Industrial and
Consumer Marketing
• Buyer –Seller Relationship
Consumer Markets:
• Less technical expertise – expensive consumer
durables like home theatres may be purchased on
simple technical specs
• Non personal relationships
• Less exchange of information – OTC products are
purchased on simple advertising and drugs on
doctors prescription
• Changing short term relationship

7. Difference between Industrial and
Consumer Marketing
Channels
Industrial Markets:
 Shorter, more direct – Automotive component
manufacturers will sell directly to car
manufacturers
Consumer Markets:
 Indirect, multiple linkages – car owners buy
auto parts through a distribution channel

8. Difference between Industrial and
Consumer Marketing
Promotion
Industrial Markets:
• Emphasis on direct selling – Sale of packaging
material to companies making toiletries and
allied products will involve a large amount of
personal interphase
Consumer Markets:
• Emphasis on advertising – Soap like Lux may be
purchased on advertising appeal of film stars

9. Difference between Industrial and
Consumer Marketing
Price
Industrial Markets:
• Competitive bidding or the result of a complex purchase
process – purchase of a nuclear power plant or fighter
planes may involve a complex purchase process involving
many ministries and the final price would be various
rounds of competitive bidding
Consumer Markets:
• List or predetermined prices – In some developed
countries power can be bought from various sources at
different prices

10. Difference between Industrial and
Consumer Marketing
Price
Industrial Markets:
• Competitive bidding or the result of a complex purchase
process – purchase of a nuclear power plant or fighter
planes may involve a complex purchase process involving
many ministries and the final price would be various
rounds of competitive bidding
Consumer Markets:
• List or predetermined prices – In some developed
countries power can be bought from various sources at
different prices